Naked Wines Share Discussion Threads

[glavey] 14/9/2022 16:44

Looks like the tide has gone out...

[sbb1x] 14/9/2022 16:20

160,000 sell someone dont want to hold over night...

[knitcraft] 14/9/2022 15:59

Closed my £30 per month sub a couple of months ago. Good wines but prefer £'s in the bank currently!

[knitcraft] 14/9/2022 15:55

Closed my £30 per month sub a couple of months ago. Good wines but prefer £'s in the bank currently!

[jonnybig] 14/9/2022 14:55

Always wondered how these wine clubs could afford to give 80 quid introductory vouchers unless the wine is overpriced.

Did like the wine but as I say you can buy perfectly nice wine from tesco for much less.

People economising will really hit the likes of naked very hard.

[velocytongo] 14/9/2022 14:15

If the biz can only make £2.5m of EBIT on £350m of sales in the wine trade, can it ever. I always thought Naked was a rubbish business bought by MJW that had a board desperate to show growth and Rowan Gormley, a very smooth salesman was happy to oblige. Gormley left with his millions and shareholders may well get wiped out here!

[2theduke] 14/9/2022 13:02

I assume this will be closed to short for PIs by tomorrow?

[dil 21] 14/9/2022 12:24

Now it’s phone trade only at Spreadex.

[daicaprice] 14/9/2022 12:14

I also cancelled my £20 a month subscription for the above reasons.

DC

[jonnybig] 14/9/2022 12:08

Noticed this on the fallers table and even though I don't have naked shares,I recently cancelled my naked membership as did the guy who recommended them to me.

Why? Because of the rising living costs and now got to a point where tescos wine after their occasional 25% discount offers greater value for money plus you don't have to wait around waiting for naked delivery.

Maybe they've had an avalanche of cancellations which has seen a big slow down in sales.

[sbb1x] 14/9/2022 12:07

Bid dropped to 84.50

[sbb1x] 14/9/2022 12:04

Bid dropped to 91. despearate seller ?

[tomboyb] 14/9/2022 11:31

Regardless for Punch -

They are stuck in a catch 22 situation -

[tomboyb] 14/9/2022 11:21

Punch card hold 9% of the equity -

[tomboyb] 14/9/2022 11:18

Naked Wines Slumps 34% as Director Quits Amid Funding Review

14 September 2022 at 10:17 BST
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NAKED WINES PLC
97.05GBp-48.05-33.12%
1179228D
PUNCH CARD MANAGEMENT LP
Private Company

UK booze retailer Naked Wines Plc’s shares tumbled on Wednesday following a non-executive director’s abrupt departure as the company reviews its finances.

The shares slid as much as 34%. Naked said in a surprise statement Tuesday night that Pratham Ravi, an analyst with largest shareholder Punch Card Management LP, has resigned from the board. The news came just three weeks after he was appointed, something the company said at the time it was “delighted” about.

The swift exit suggests “something has gone somewhat awry,” Liberum analyst Wayne Brown said in a note to clients, slashing his target price on the company by a third. A spokeswoman for Naked said she couldn’t comment on specific reasons for Ravi’s departure, while Punch and Ravi didn’t immediately respond to requests for comment.

Naked said in a separate statement that it’s reviewing its operational and financial plans for the next 18 months, and added that it’s in discussions about its credit facility. The firm, which has a market capitalization of £74 million ($85 million), will provide a trading update on Oct. 17.

That update could be “rather negative,” Liberum’s Brown said, pointing to a weak balance sheet and question marks around covenants, liquidity and going concern issues.

[dil 21] 14/9/2022 11:15

Unless they’ve done some pretty smart hedging then they are going to make a big loss on currency conversion being estimates are based on USD being 1.29 to the Pound.

Another drain on cash.

[2theduke] 14/9/2022 10:47

Callum / it's extremely hard to short vino on that very reason. No debt, decent reserves. Prudence paying off there in my view as well.

[typo56] 14/9/2022 10:40

One thing that got me in the last results was the increased inventory of £142m vs £71m FY21.

"Given the challenges presented by supply chain disruptions combined with the higher demand seen in FY21, we invested £61.2 million of cash in FY22 to grow our inventory in order to maintain product availability...We will continue to run the business at a higher inventory level as needed to support our anticipated growth, while carefully managing levels to demand."

"On 31 March 2022, we raised a $60 million credit facility with a syndicate of banks. Under the facility we may borrow against our US inventory."

What could possibly go wrong?

As the saying goes, sales is vanity profit is sanity.

Not quite the same but similar in some respects to Conviviality PLC (CVR)?

[sbb1x] 14/9/2022 10:25

Cant buy anyBut can sell!!!

[callumross] 14/9/2022 10:18

Never has "cash is king" proved more true. VINO down 10% today on no trades in sympathy with WINE but the key difference is that they have £15m gross cash, £6m net cash, are cash flow positive and no debt. Regardless of who you believe is the "better" company they have been more conservatively managed and are likely to survive and indeed thrive on the downfall of a key competitor. Yet strangely, despite everything, WINE still has a market cap over twice that of VINO. The only metric on which WINE outperforms VINO is turnover and as that turnover is lossmaking anyway it is of no consequence.

[2theduke] 14/9/2022 10:06

When I modelled it, a 10% slip in cost base alongside flat turnover led to a cash loss of £16m. They have some reserves, but to me if they're raising cash with that level of losses they need at least £45m... which led me to think 50p. Not sure now with he new info out.

[dil 21] 14/9/2022 10:04

Any placing will have to be even more discounted than the wine they sell.

Looks to me like a one way ticket to oblivion.

[typo56] 14/9/2022 09:56

If there's a rights issue I was thinking at 40p. Now I'm thinking 25p.

As I keep bashing on, the rights price doesn't really matter to investors, it's the amount they're trying to raise that matters more. The price is still psychological though and a reflection of the underwriters' risk appetite.

I'm obviously getting a bit ahead here. There's no certainty there will be a rights issue or any fundraise but it would be preferable for shareholders to a placing to city mates with a token open offer.

[bigbigdave] 14/9/2022 09:48

No comparison typo, The Wine Society's selection and service is top notch, can name delivery date too.

Made the mistake of ordering from Naked Wine some years ago, only because I had a fairly substantial discount voucher. Surprised that having got my e mail they never chased me up for more orders. Poor.

[sbb1x] 14/9/2022 09:47

Shorters still got this?